From Adanna Nnamani, Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Said it has registered 172 Host Communities Development Trusts (HCDTs) as part of efforts to promote peace, development and increased oil production in host communities.

NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, made this known when the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) visited the Commission in Abuja.

According to a statement by Eniola Akinkuotu, the Commission’s Spokesperson, Eyesan said the NUPRC had been enforcing the provisions of the Petroleum Industry Act (PIA), particularly those relating to host communities and the obligations of oil and gas companies operating in the country.

“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” she said.

Under the PIA, oil and gas companies, otherwise known as settlors, are required to contribute three per cent of their operating expenditure (OPEX) of the preceding financial year to a Host Communities Trust Fund for the benefit of their host communities.

According to Eyesan, the HCDTs had funded the construction of schools, hospitals and other infrastructure, contributing significantly to peace and stability in communities that were previously volatile.

She said the development had also contributed to increased oil production.

Eyesan, however, acknowledged that some of the HCDTs had become subjects of litigation due to disagreements over the constitution of their Boards of Trustees.

She said the NUPRC had been working to ensure that the trusts operate smoothly in the interest of the country.

She added that the Commission’s Alternative Dispute Resolution Centre had played a pivotal role in addressing some of the grievances.

The NUPRC boss also clarified that oversight of how the funds are managed remained the exclusive preserve of the Commission.

She, however, promised to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.

Earlier, the Chairman of RMAFC, Dr. Mohammed Shehu, commended the NUPRC for overseeing reforms in the oil and gas sector, which he said had contributed to growth in production.

Shehu noted that the upstream oil and gas sector was important to RMAFC because it accounts for a large volume of what goes into the Federation Account.

He called for stronger collaboration between the two institutions in the interest of the country.

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